Up to �68m more could be available

The Accounts Commission says improved management of services would give councils millions of pounds more to spend.

Most of that extra money would come from uncollected council tax, which accounted for �52m last year - on top of the �900m which remains uncollected from the days of the poll tax.

But the commission also highlights refuse collection as an area where authorities could raise more money.

It says councils do not know how much to charge businesses for refuse collection, and reckons an extra �10m could be raised.

Internal dispute

However, Cosla accused the commission of spin.

It said authorities had increased council tax collection last year and were working hard at bringing down arrears.

Last month, Glasgow, Falkirk, Dundee and Clackmannanshire councils said they would not renew their membership of Cosla at the end of the financial year.

The local authorities signalled their plan to withdraw over allegations that the organisation had failed to act in the bests interests of council tax payers.